Voluntary Provident Fund

Voluntary Provident Fund (VPF) is also known as a Voluntary Retirement Fund. It is the voluntary fund contribution from the employee towards his/her PF account. The contribution must be over and above 12%. However, the maximum contribution can be up to 100% of the basic salary plus dearness allowance. Interest is earned at the same rate as the EPF.

Unlike, Employees’ Provident Fund Scheme, employers are under no obligation to contribute to their employees’ voluntary provident fund portfolio. Likewise, an employee also has no obligation to contribute to this plan. It is important to note that once you have chosen to contribute to a voluntary provident fund, the same cannot be terminated or discontinued before the completion of base tenure of 5 years. The interest rate of such plans is decided by the Government of India at the starting of each financial year.

Benefits of Voluntary Provident Fund

Safe option to invest: Since this scheme is operated by the Government of India. There are no risks involved in investing as compared to other long-term investment options offered by private organizations.
The high rate of interest: Under this scheme, the rate of interest is 8.50% p.a. The interest that is generated from the contributions is also exempt from tax.
The application process is easy: The process to open a VPF account is very simple. Employees can contact their employer’s finance team and request them to open a voluntary provident fund account by submitting the registration form.
The transfer process is simple: In case employees change their jobs, it is very simple for them to transfer the VPF account from their old company to the new one.

Eligibility for Voluntary Provident Fund

Since the Voluntary Provident Fund scheme is an extension of the Employees’ Provident Fund scheme, only salaried employees who receive payments monthly in their salary accounts are eligible to invest in this scheme.

Documents required

The below-mentioned documents must be submitted for employees to open a VPF account:

Ministry of Finance- Company registration certificate with the Ministry of Finance (MoF) must be submitted
Form 24 and 49.
In case the organization is an ‘Sdn Bhd’, the memorandum and articles of association must be submitted
The details of the company profile
Business registration certificate
Other documents as and when required by the employer

Tax benefits available under a Voluntary Provident Fund

When it comes to investment options in India, the Voluntary provident fund is considered as one of the best. The employees are eligible for tax benefits of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. The interest received from these contributions is also exempt from tax. However, in case the rate of interest is more than 9.50% p.a., the amount will be taxable.

The interest rate of a VPF

The rate of interest is set by the Indian Government and is revised every year. The rate of interest for FY 2019-2020 is 8.50% per annum. Previously, the rate of interest was 8.65%. Investments towards a VPF account is viable because of its high rate of interest and tax benefits.

Rules and regulations of a VPF

The rules and regulations of the VPF account are mentioned below:

Only salaried employees or those who are working for organizations that are recognized by the Employees’ Provident Fund Organization of India, can open a VPF Account. The self-employed individual who is working in the unorganized sectors cannot open a VPF account.
You can open a VPF account at any time of the financial year. Investment in this account cannot be stopped before the completion of the base tenure of 5 years.
It is important to note that the interest rate on a VPF accounts is determined at the beginning of the financial year by the Indian Government. The rates can increase or decrease when compared with the previous years.
The full amount available at maturity can be withdrawn at the time of resignation or retirement. Individuals can also transfer their VPF amount from the previous employer to their current employer. In case the account holder passes away, the legal heir or the nominee will receive the total amount that has been accumulated.
Partial withdrawals in the form of loans can be made against the VPF account. In case the amount is withdrawn before the maturity period, the withdrawn sum is taxable.

The process to withdraw money from a VPF account

Withdrawing money from a VPF account could come in handy in case of financial requirements due to medical emergencies. The employees are required to fill up Form-31 and give a request letter in writing for VPF withdrawal. Form-31 can be collected by the employees from their employer’s Human Resource (HR) team or on the government’s portal. All required documents, including the employees’ detail such as PF number, postal address, and bank details must be submitted. A cancelled cheque must also be submitted. All the documents that are submitted must be self-attested.

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Personal Loan

A personal loan is a credit facility that does not require collateral and is offered by banks and NBFCs to employed individuals. IndiaLends, the largest online personal loan provider in the country, has assisted over 150,000 customers and collaborates with more than 70+ RBI-Approved partners to offer personal loans tailored to different customer profiles. Here are some notable features of the convenient personal loans available through IndiaLends.

Personal Loan Interest Rate

The interest rates offered to customers are subject to variation based on their individual profiles. Typically, loan rates begin at approximately 10.25%. To improve the likelihood of obtaining a loan at a lower interest rate, it is advisable to maintain a strong credit history. Ideally, a CIBIL score above 750 is considered favorable.

Personal Loan Tenure

The repayment period for a Personal Loan typically ranges from 3 months to 6 years, allowing borrowers to choose a tenure that aligns with their requirements. Whether one needs a short-term or long-term loan, they have the flexibility to select a suitable repayment duration. However, it is crucial to ensure that the Equated Monthly Installment (EMI) amount is manageable and can be comfortably repaid each month.

Documents required to apply for a Personal loan

Financial institutions typically require certain documents before approving and disbursing a loan. These documents include identification proof, address proof, a copy of the PAN card, salary slips, recent bank statements, photographs, ECS mandates, and post-dated cheques.

Personal Loan With Zero Pre-Payment Fee

Certain NBFCs offer customers the flexibility to fully repay the loan amount or make partial pre-payments towards the principal. However, specific terms and conditions are typically associated with such pre-payments. For instance, pre-payment is usually allowed after 12 months, and a pre-payment fee may be levied on the repaid amount. Nevertheless, these terms may vary depending on the product, so it is essential to seek clarification from your lender regarding pre-payment policies before the loan disbursal.

Low-Interest Personal Loan

As discussed earlier, the interest rates for personal loans can vary based on the customer's profile. IndiaLends employs algorithms to strive to obtain the most competitive interest rate product available for each customer.

Personal Loan From Banks

Banks are financial institutions registered with the Reserve Bank of India (RBI) and engaged in various activities such as accepting deposits and providing loans. In addition to universal banks, the RBI has recently introduced payment banks and small finance banks. However, only universal banks and small finance banks are authorized to lend to individuals. Applying through IndiaLends offers the simplest method to obtain a personal loan from the leading banks in the country. IndiaLends has established collaborations with renowned banks and NBFCs, including HDFC, ICICI, RBL, IndusInd, Kotak, Yes Bank, and more.

Personal Loan From NBFCs

NBFCs are non-banking financial institutions registered with the Reserve Bank of India (RBI), primarily engaged in lending to individuals and businesses. Unlike banks, NBFCs are generally not authorized to accept customer deposits. They rely on borrowing funds from banks for their lending activities, which often results in comparatively higher interest rates on Personal Loans than those offered by banks. Additionally, NBFCs tend to cater to a higher-risk profile segment, leading to higher acceptance rates for loan applications.

New To Credit Loans

Although CIBIL and Experian maintain records for more than 150 million individuals, a significant majority have never borrowed from an RBI-regulated financial institution that is a member of a credit bureau. As a result, these individuals lack a credit bureau record, meaning they have no credit history or credit score. Due to the absence of a credit file, they often encounter difficulties in securing loans from financial institutions. However, IndiaLends has forged special partnerships with various banks, enabling them to assist some individuals who are new to credit (with thin credit files) in accessing low-interest personal loans.

Recently Declined Personal Loan Application

A significant number of consumers face loan application rejections from banks due to factors such as inadequate credit history, limited affordability, insufficient supporting documents, and more. However, IndiaLends can assist some of these customers in obtaining affordable loans through collaborations with specialized NBFCs.

Banks and NBFCs Partners

IndiaLends has established partnerships with a comprehensive range of lending institutions, encompassing both prominent and smaller entities. Our collaborations include renowned banks such as HDFC, ICICI, SBI, Kotak, IndusInd, Tata Capital, Bajaj Finserv, IDFC First, IIFL, IndiaBulls, RBL Bank, DHFL, Aditya Birla Capital, American Express, among others, ensuring a wide array of options for our customers.

Loans For Phones / Desktops / Laptops And Tablets

IndiaLends offers easy installment personal loans starting from as low as Rs. 25,000 for customers who wish to purchase the latest gadgets, whether it's an iPhone 7 or a MacBook Pro. This allows individuals to acquire their desired gadgets through manageable loan amounts and easy repayment options.

EMI Without Credit Cards

While e-commerce marketplaces offer convenient EMI options for significant purchases, these benefits are typically limited to customers who already possess credit cards. Unfortunately, this privilege extends to only a small proportion of the population, approximately 10 million individuals across the country. However, IndiaLends provides an accessible solution through its online personal loan, enabling individuals to swiftly make large-ticket purchases on e-commerce platforms and convert them into affordable EMIs. This expands the opportunity for a broader segment of customers to enjoy the convenience of EMI-based shopping on e-commerce portals.

Credit Report

A credit report serves as a financial report card, encompassing historical data regarding an individual's loans and credit cards. Various types of loan accounts are included, such as Credit Cards, Personal Loans, Home loans, gold loans, Car loans, Two-Wheeler loans, business loans, Loan against Property, Agriculture loans, and more. Each account provides detailed information about repayment history, loan amount, tenure, open and close dates, and other relevant details. Credit Bureaus utilize this information to assess the risk associated with an individual, resulting in a credit score. The credit score ranges from 300 to 900, and a higher score increases the likelihood of loan approval. In India, there are four credit bureaus—CIBIL, Experian, Equifax, and Hi-Mark—providing credit scores to individuals. IndiaLends has partnered with Experian and Hi-Mark credit bureaus to offer its customers free credit reports and analysis. Additionally, IndiaLends customers also receive complimentary credit report refreshments every quarter for the first 12 months.

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LEARN MORE

Personal Loan

A personal loan is a credit facility that does not require collateral and is offered by banks and NBFCs to employed individuals. IndiaLends, the largest online personal loan provider in the country, has assisted over 150,000 customers and collaborates with more than 70+ RBI-Approved partners to offer personal loans tailored to different customer profiles. Here are some notable features of the convenient personal loans available through IndiaLends.

Personal Loan Interest Rate

The interest rates offered to customers are subject to variation based on their individual profiles. Typically, loan rates begin at approximately 10.25%. To improve the likelihood of obtaining a loan at a lower interest rate, it is advisable to maintain a strong credit history. Ideally, a CIBIL score above 750 is considered favorable.

Personal Loan Tenure

The repayment period for a Personal Loan typically ranges from 3 months to 6 years, allowing borrowers to choose a tenure that aligns with their requirements. Whether one needs a short-term or long-term loan, they have the flexibility to select a suitable repayment duration. However, it is crucial to ensure that the Equated Monthly Installment (EMI) amount is manageable and can be comfortably repaid each month.

Documents required to apply for a Personal loan

Financial institutions typically require certain documents before approving and disbursing a loan. These documents include identification proof, address proof, a copy of the PAN card, salary slips, recent bank statements, photographs, ECS mandates, and post-dated cheques.

Personal Loan With Zero Pre-Payment Fee

Certain NBFCs offer customers the flexibility to fully repay the loan amount or make partial pre-payments towards the principal. However, specific terms and conditions are typically associated with such pre-payments. For instance, pre-payment is usually allowed after 12 months, and a pre-payment fee may be levied on the repaid amount. Nevertheless, these terms may vary depending on the product, so it is essential to seek clarification from your lender regarding pre-payment policies before the loan disbursal.

Low-Interest Personal Loan

As discussed earlier, the interest rates for personal loans can vary based on the customer's profile. IndiaLends employs algorithms to strive to obtain the most competitive interest rate product available for each customer.

Personal Loan From Banks

Banks are financial institutions registered with the Reserve Bank of India (RBI) and engaged in various activities such as accepting deposits and providing loans. In addition to universal banks, the RBI has recently introduced payment banks and small finance banks. However, only universal banks and small finance banks are authorized to lend to individuals. Applying through IndiaLends offers the simplest method to obtain a personal loan from the leading banks in the country. IndiaLends has established collaborations with renowned banks and NBFCs, including HDFC, ICICI, RBL, IndusInd, Kotak, Yes Bank, and more.

Personal Loan From NBFCs

NBFCs are non-banking financial institutions registered with the Reserve Bank of India (RBI), primarily engaged in lending to individuals and businesses. Unlike banks, NBFCs are generally not authorized to accept customer deposits. They rely on borrowing funds from banks for their lending activities, which often results in comparatively higher interest rates on Personal Loans than those offered by banks. Additionally, NBFCs tend to cater to a higher-risk profile segment, leading to higher acceptance rates for loan applications.

New To Credit Loans

Although CIBIL and Experian maintain records for more than 150 million individuals, a significant majority have never borrowed from an RBI-regulated financial institution that is a member of a credit bureau. As a result, these individuals lack a credit bureau record, meaning they have no credit history or credit score. Due to the absence of a credit file, they often encounter difficulties in securing loans from financial institutions. However, IndiaLends has forged special partnerships with various banks, enabling them to assist some individuals who are new to credit (with thin credit files) in accessing low-interest personal loans.

Recently Declined Personal Loan Application

A significant number of consumers face loan application rejections from banks due to factors such as inadequate credit history, limited affordability, insufficient supporting documents, and more. However, IndiaLends can assist some of these customers in obtaining affordable loans through collaborations with specialized NBFCs.

Banks and NBFCs Partners

IndiaLends has established partnerships with a comprehensive range of lending institutions, encompassing both prominent and smaller entities. Our collaborations include renowned banks such as HDFC, ICICI, SBI, Kotak, IndusInd, Tata Capital, Bajaj Finserv, IDFC First, IIFL, IndiaBulls, RBL Bank, DHFL, Aditya Birla Capital, American Express, among others, ensuring a wide array of options for our customers.

Loans For Phones / Desktops / Laptops And Tablets

IndiaLends offers easy installment personal loans starting from as low as Rs. 25,000 for customers who wish to purchase the latest gadgets, whether it's an iPhone 7 or a MacBook Pro. This allows individuals to acquire their desired gadgets through manageable loan amounts and easy repayment options.

EMI Without Credit Cards

While e-commerce marketplaces offer convenient EMI options for significant purchases, these benefits are typically limited to customers who already possess credit cards. Unfortunately, this privilege extends to only a small proportion of the population, approximately 10 million individuals across the country. However, IndiaLends provides an accessible solution through its online personal loan, enabling individuals to swiftly make large-ticket purchases on e-commerce platforms and convert them into affordable EMIs. This expands the opportunity for a broader segment of customers to enjoy the convenience of EMI-based shopping on e-commerce portals.

Credit Report

A credit report serves as a financial report card, encompassing historical data regarding an individual's loans and credit cards. Various types of loan accounts are included, such as Credit Cards, Personal Loans, Home loans, gold loans, Car loans, Two-Wheeler loans, business loans, Loan against Property, Agriculture loans, and more. Each account provides detailed information about repayment history, loan amount, tenure, open and close dates, and other relevant details. Credit Bureaus utilize this information to assess the risk associated with an individual, resulting in a credit score. The credit score ranges from 300 to 900, and a higher score increases the likelihood of loan approval. In India, there are four credit bureaus—CIBIL, Experian, Equifax, and Hi-Mark—providing credit scores to individuals. IndiaLends has partnered with Experian and Hi-Mark credit bureaus to offer its customers free credit reports and analysis. Additionally, IndiaLends customers also receive complimentary credit report refreshments every quarter for the first 12 months.

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